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Despite those concerns, Amazon is joining Microsoft in calling for regulation of facial recognition — on their terms.

Digital cultural works, especially in the form of internet-based novels and online games, are currently well positioned to convey Chinese values and solutions to the rest of the world, especially in light of China's booming internet development, said Shen Guolin, a professor at Fudan University's School of Journalism.

Developing the capital market has become urgent and important for China to stabilize its macro leverage ratio and support innovation-driven growth, Fang said.

Details such as the headquarters location and potential size of the new company have yet to be announced. The companies describe the new venture as “in the early planning stages.” The effort will be led initially by Todd Combs, an investment officer of Berkshire Hathaway; Marvelle Sullivan Berchtold, a JPMorgan Chase managing director; and Beth Galetti, an Amazon senior vice president. The longer-term management team and key operational details “will be communicated in due course,” the companies say.

Domestic demand is playing an increasingly important role in boosting China's economic growth, as the country continuously pushes forward its supply-side structural reform and innovation-driven development strategy, the National Bureau of Statistics said on Tuesday.